CLA-2 RR:CR:GC 962568 JAS
Bill Jerome, Vice President
H.A. & J.L. Wood, Inc.
U.S. Customs Broker
Pembina, ND 58271
RE: NY 896369 Revoked; Road/Rail Power Unit
Dear Mr. Jerome:
In response to your letter of March 24, 1994, the then-Area Director of Customs, New York Seaport, issued NY 896369 to you on April 6, 1994, on behalf of Brandt Road Rail Corporation. This ruling classified the Road/Rail Power Unit (referred in the ruling as the “rail road power unit”), in subheading 8604.00.00, Harmonized Tariff Schedule of the United States (HTSUS), as a railway or tramway maintenance or service vehicle. We have reviewed this classification and determined that it is incorrect.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY 896369 was published on September 29, 1999, in the Customs Bulletin, Volume 33, Number 39. No comments were received in response to that notice.
FACTS:
The Road/Rail Power Unit (the unit) is a hybrid class 8 highway tractor modified with retractable wheel sets and rail equipment that enables it to be operated on either highways or standard gauge railway tracks. It features a 425 HP Caterpillar diesel engine (standard to the tractor) coupled to a hydraulic-automatic transmission. In the rail mode, two rail axles are lowered into contact with the rails and the tag axle is retracted
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upwards. The highway steering axle is raised clear of the rail by the lifting action of the rail wheel sets. Both road and rail operation utilize the same tandem drive axles which consist of truck differentials and rubber tires.
When on rail, the unit is capable of pulling up to fifteen (15) loaded or twenty five (25) empty 100 ton railway hopper cars at speeds up to 25 mph. The unit is also capable of towing maintenance rail cars, and is road-legal, which enables it to travel by road from work site to work site. A rear-mounted
knuckle boom crane enables workers to load and unload railroad ties, rails and maintenance equipment. The unit conforms to all applicable standards of the American Association of Railroads. The remaining description of the unit contained in NY 896369 is incorporated by reference in this decision.
The HTSUS provisions under consideration are as follows:
8604.00.00 Railway or tramway maintenance or service vehicles, whether or not self- propelled (for example, workshops, cranes, ballast tampers, trackliners, testing coaches and track inspection vehicles)
* * * *
8701 Tractors (other than tractors of heading 8709)
8701.20.00 Road tractors for semi-trailers
ISSUE:
Whether the unit is a tractor for tariff purposes.
LAW AND ANALYSIS:
Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), goods are to be classified according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 3(a) states that where goods are, prima facie, classifiable under two or more headings, the heading which provides the most specific description shall be preferred to headings providing a more general description.
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The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. Though not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and Customs believes the ENs should always be consulted. See T.D. 89-80. 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The classification expressed in NY 896369 was based in large part on your characterization of the unit’s main function and intended service application as a rail maintenance vehicle. However, Chapter 87, Note 2, HTSUS, states in part that for purposes of that chapter “tractors” means vehicles constructed
essentially for hauling or pushing another vehicle, appliance or load, whether or not they contain subsidiary provision for the transport, in connection with the main use of the tractor, of tools, seeds, fertilizers or other goods.
With regard to railway or tramway maintenance or service vehicles, relevant ENs on p.1536 state that the vehicles covered by heading 8604, whether or not self-propelled, are specially designed for use, for example, in the installation, servicing and maintenance of the railway track area or permanent way and structures alongside the track. Among the vehicles listed in the ENs are (2) breakdown and other crane vehicles, crane-vehicles for lifting or placing rails, crane-vehicles for loading or unloading at station platforms, and (3) winch trucks. The unit is prima facie classifiable in heading 8604. However, other ENs on p. 1544 state that heading 8701 includes tractors which can be used both on rails and on road, but not those which are designed exclusively for use on rails. These ENs include within heading 8701 tractors fitted with winches (e.g., as used for hauling out bogged-down vehicles, for up-rooting and hauling trees, or for the remote haulage of agricultural implements). The unit is also prima facie classifiable in heading 8701.
The vehicles of heading 8604 are specially designed for servicing and maintaining the railway track area or permanent way. Such vehicles do not have design features that suit them specifically for hauling or pushing applications. Tractors of heading 8701, on the other hand, may utilize a winch to perform a hoisting function that in some manner services or maintains the railway track area, but this is a subsidiary function because tractors are not constructed essentially for this purpose. Whether pulling empty or loaded hopper cars or other maintenance
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vehicles by rail, it is clear that the unit is constructed essentially for hauling or pushing applications. The available evidence indicates to us that heading 8701 provides a more specific description for the unit than does heading 8604.
HOLDING:
Under the authority of GRI 3(a), the Road/Rail Power Unit is provided for in heading 8701. It is classifiable in subheading 8701.20.00, HTSUS.
EFFECT ON OTHER RULINGS:
NY 896369, dated April 6, 1994, is revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
John Durant, Director
Commercial Rulings Division